Nestle sweet on nation's massive market

Kais Marzouki, chairman & CEO of Nestle Greater China Region, said the company remains confident in its long-term growth potential in the Chinese market, citing health, pet care and the "silver economy" as major opportunities, through creating demand and premium products while developing penetrating distribution channels.

Nestle, a participant in the China International Import Expo since its inception, marked its eighth consecutive year at the expo with imported products across seven business units from 12 countries.

"Although over 90 percent of what we sell in China is produced locally, the CIIE is a key moment for us to showcase our innovations and engage with all our stakeholders — from government partners to consumers," Marzouki said.

Marzouki said in an interview during the CIIE in Shanghai that he is confident for the Chinese market to become a growth engine for the group again.

"China will continue to grow and develop and lead the way for many in the world in many areas," he said. "What's important for a company is to make the right choices and focus on where to play."

Marzouki mentioned several key growth areas for Nestle, such as health-focused products, pet nutrition and aging-related solutions, which have many opportunities in China.

"Across generations, health has become a top concern. Consumers read labels carefully, try to understand ingredients and look for functional benefits," he said. "This makes health and functional products a big opportunity for us."

He added that the trend toward affordable premium products also fits Nestle's positioning as "one of the leaders in the world for health and wellness".

Reflecting on his return to China after more than two decades, Marzouki said the pace of transformation has been remarkable. "In many other parts of the world, you go back after 25 years and everything looks the same. Here, everything has changed," he said, adding that Nestle is adjusting its business model to match the evolving market dynamics.

"The tailwinds that drove growth for the past 30 or 40 years are not as strong anymore. We can't just push products everywhere," he said. "We need to focus more on quality, relevance and targeted propositions across our portfolio."

With 24 factories in China, the company has committed over 5 billion yuan ($702 million) in China since 2020 to expand its operations, with a strategic focus on high-tech and high-innovation sectors. Therefore, creating general demand is actually on the mind of the CEO.

On Nestle's diverse portfolio, Marzouki said: "Coffee consumption in China has developed tremendously — people are building the habit, and we see huge potential for the category." In infant nutrition, despite a sharp decline in birth rates, Marzouki said the market still holds promise. "Even though the number of newborns has dropped, consumption per baby is rising, and international brands are gaining share."

Looking ahead, Nestle also sees significant potential in products designed for the silver economy.

"By 2030, 25 percent of China's population will be over 60. These consumers generally have more disposable income and are increasingly health-conscious," Marzouki said. He cited the company's Yiyang brand, which offers products supporting heart health and blood pressure management, as an example of tailoring innovation to local needs.

He added that Chinese consumers today are balancing rational and emotional spending — managing budgets carefully while also seeking moments of indulgence.

"Consumers think twice before every purchase, but they also want to please themselves with emotional connections — whether through food, beverages or other categories," he said. "If we offer the right product at the right moment, the opportunity is huge."

wangzhuoqiong@chinadaily.com.cn